A.M. Best Revises Outlook to Stable and Affirms Ratings of Aspen Insurance UK Limited
08 December 2007 - 6:19AM
Business Wire
A.M. Best Co. has affirmed the financial strength rating of A
(Excellent) and the issuer credit rating (ICR) of �a� of Aspen
Insurance UK Limited (AIUK) (United Kingdom). A.M. Best has also
affirmed the ICR of �bbb� of AIUK�s ultimate parent, Aspen
Insurance Holdings Ltd. (Aspen) (Bermuda) (NYSE: AHL), the debt
ratings of �bbb� on the USD 250 million 6% senior notes, �bb� on
the USD 200 million perpetual non-cumulative preference shares and
the USD 230 million perpetual preferred income equity replacement
securities, all issued by Aspen. In addition, A.M. Best has
affirmed the ratings for Aspen�s universal shelf registrations of
�bb�, �bbb-� and �bbb� on preferred stock, senior unsecured and
subordinated debt, and upgraded to �bbb-� from �bb+� the rating on
the junior subordinated debt. The outlook for all ratings has been
revised to stable from negative. The change in outlook reflects a
sustainable improvement in AIUK�s stand alone risk-adjusted
capitalisation and excellent financial performance. In addition,
Aspen has continued to balance the spread of business between its
two main operating entities, AIUK and its sister company, Aspen
Insurance Limited (AIL) (Bermuda), through the use of intra-group
quota share arrangements. This even distribution of risk, AIUK�s
excellent risk-adjusted capitalisation and excellent financial
strength of the consolidated group has led A.M. Best to harmonise
the ratings of both entities. (For details on the AIL rating,
please refer to A.M. Best�s press release dated December 7, 2007.)
A.M. Best believes that AIUK is likely to maintain excellent
performance in 2007, supported by a benign year for U.S. hurricanes
and improved investment returns. However, AIUK�s 2007 combined
ratio is likely to deteriorate to approximately 90% compared to 78%
in 2006 due to a higher cession to AIL under its pro rata
reinsurance contracts. In addition, A.M. Best believes there will
be modest deterioration in AIUK�s loss ratio to approximately 55%
from 50% in 2006, reflecting softening rates and the impact of the
UK floods and Windstorm Kyrill. Despite the movements at the AIUK
level, A.M. Best anticipates a continuation of Aspen�s strong
consolidated underwriting performance, with a combined ratio of
approximately 85% anticipated for 2007 (83% in 2006). In A.M.
Best�s opinion, AIUK has an excellent business profile based on its
well-established and diversified portfolio (both by product and
territory), which comprises property and casualty reinsurance,
primary UK commercial insurance, and specialty insurance and
reinsurance business (including marine liability, hull, energy and
aviation business). Founded in 1899, A.M. Best Company is a global
full-service credit rating organization dedicated to serving the
financial and health care service industries, including insurance
companies, banks, hospitals and health care system providers. For
more information, visit www.ambest.com.
Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Sep 2024 to Oct 2024
Aspen Insurance (NYSE:AHL)
Historical Stock Chart
From Oct 2023 to Oct 2024
Real-Time news about Aspen Insurance Holdings Limited Ordinary Shares (New York Stock Exchange): 0 recent articles
More A.M. Best Co. News Articles